In the last financial year i.e. 2023-24, companies have raised a lot of capital through Initial Public Offering (IPO). Only 76 companies have raised about Rs 62,000 crore through IPO during this period. This amount is 19 percent more than the previous financial year. This was much higher than the Rs 52,115 crore raised by 37 companies in the previous financial year. According to Bhasha news, the IPO market witnessed a boom due to the rise in stock markets, strong participation of retail investors and strong investment from institutional investors. Pantomath Financial Services Group said in its report that this momentum is expected to continue in the financial year 2024-25 also and it could be another great year for IPOs.
One lakh crore rupees can be raised in FY2024-25
According to the news, the report said that this confidence is due to increase in domestic capital, better governance practices, increasing entrepreneurship and favorable attitude towards foreign direct investment (FDI). Pantomath Financial estimated that Rs 1 lakh crore can be raised through IPO in the current financial year. Mahavir Lunawat, managing director of Pantomath Capital Advisors, said that if the Indian market is not affected by any global crisis, this figure could increase further.
Newly listed shares also benefit
The S&P BSE IPO index, which tracks the post-listing performance of newly listed companies, jumped 69 per cent this financial year. Newly listed stocks have also benefited from the rally in small and midcap segments as most of them belong to this group. Companies from many sectors took advantage of the IPO market in FY 2024. The gains from IPOs can be attributed to several factors. The rally in secondary markets, enthusiastic participation of retail investors in IPOs and strong inflows from institutional investors played a key role in these gains.
Data compiled by Prime Database shows that there has been a surge in SME (small and medium enterprises) IPO activity. The segment saw huge growth in FY 2023-24, with 200 SME IPOs raising Rs 5,838 crore, compared to 125 IPOs that raised Rs 2,235 crore in the previous financial year. The largest SME IPO was that of KP Green Engineering which raised Rs 180 crore.
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